BETHESDA, Md., Jan. 24, 2011 /PRNewswire/ -- Spherix Incorporated (Nasdaq: SPEX), an innovator in biotechnology for therapy in diabetes, metabolic syndrome and atherosclerosis; and providers of technical and regulatory consulting services to food, supplement, biotechnology and pharmaceutical companies, today announced the closing of previously reported agreements to sell $2.77 million of shares of its common stock and warrants to purchase shares of its common stock in a registered direct offering to institutional investors. Spherix has issued an aggregate of 4,269,000 shares of common stock to the institutional investors together with warrants to purchase an additional 2,134,500 shares of common stock. The warrants have an exercise price of $0.80 per share, and are exercisable six months after issuance and terminate 60 months after the date of issuance.
The Company intends to use the net proceeds of approximately $2.6 million from the offering to continue the development of D-tagatose for diabetes and triglycerides, as well as for general corporate purposes.
"We are pleased to have effected this transaction, which will be helpful in funding our initial studies to investigate D-tagatose as a treatment for high triglycerides," commented Dr. Claire L. Kruger, Chief Executive Officer of Spherix. "In addition, these funds will provide us with additional runway as we seek a partner for the further development of the use of D-tagatose in the treatment of diabetes," Dr. Kruger added.
Rodman & Renshaw, LLC, a wholly-owned subsidiary of Rodman & Renshaw Capital Group, Inc., acted as the exclusive placement agent for the offering.The common stock and warrants are being offered by Spherix pursuant to an effective registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC). A prospectus supplement relating to the offering described above was filed with the SEC last Friday.